What is a risk assessment?

A risk assessment is a systematic process that focuses on identifying and evaluating potential hazards along with their impacts on a community or organization. This important evaluation allows stakeholders to understand the various risks they may face, consider the likelihood of these risks occurring, and assess the potential consequences should they happen. By examining both the hazards and their impacts, a risk assessment helps in prioritizing risks and implementing appropriate measures to mitigate them effectively.

In contrast, the other options do not encapsulate the comprehensive nature of a risk assessment. Focusing solely on financial loss ignores numerous other critical factors such as health, safety, and environmental consequences. Evaluating the effectiveness of response teams is a different aspect of disaster management and does not align with the purpose of a risk assessment, which is much broader. Lastly, reviewing past disasters without considering future implications can lead to an incomplete understanding of risks, as it neglects evolving hazards and changes in community resilience and vulnerability.